HBA-MPA C.S.H.B. 2458 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2458
By: Yarbrough
Licensing & Administrative Procedures
4/28/1999
Committee Report (Substituted)

BACKGROUND AND PURPOSE 

Manufacturers and distributors of alcoholic beverages (upper tier) may
conduct promotional activities on licensed retail premises that feature
their brand or brands of product.  These promotional activities generally
include giving away promotional items of minimal value to consumers.  In
the course of these promotions, the upper tier businesses must check or
confirm with the retailer that their product is available at the retailer's
premises in advance of the event.  Such advance coordination permits the
proper and appropriate execution of customary promotional sales activities.
C.S.H.B. 2458 specifies that a manufacturer or distributor of alcoholic
beverages may prearrange or preannounce a promotional activity permitted by
the Alcoholic Beverage Code. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 102.07, Alcoholic Beverage Code, by amending
Subsection (a) and adding Subsection (g), as follows: 

(a) Makes a conforming change.

(g)  Provides that Subsection (a) (setting forth a number of prohibited
activities for a person who owns or has an interest in the business of a
distiller, brewer, rectifier, wholesaler or for others involved in an
alcoholic beverage business) does not prohibit a permittee covered under
that subsection from prearranging or preannouncing a promotional activity
with a retailer to be held on the retailer's premises if the promotion is
otherwise permitted by this code.  Authorizes a holder of a wholesaler's or
class B wholesaler's permit to prearrange a promotional activity only for
distilled spirits or wine. Prohibits a permittee from: 

(1) preannouncing a promotion to a consumer, if the permittee is a holder
of a wholesaler's or class B wholesaler's permit, unless otherwise
permitted; or 
(2) preannouncing the purchase of wine or distilled spirits to a consumer.

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2458 differs from the original bill in SECTION 1 (proposed Section
102.07(g), Alcoholic Beverage Code),  by adding new language specifying
that a permit holder is not prohibited from prearranging or preannouncing a
promotional activity with a retailer to be held on the retailer's premises
if the promotion is otherwise permitted by this code.  The substitute also
adds provisions authorizing a holder of a wholesaler's or class B
wholesaler's permit to prearrange a promotional activity only for distilled
spirits or wine, and prohibiting the permittee from preannouncing a
promotion or the purchase of wine or distilled spirits to a consumer,
rather than authorizing such in the original bill.